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A PATH TO AFFORDABLE COMMUNITY CENTERED
HOMEOWNERSHIP
Purchasing a home through our Community Land Trust (CLT) is more than just buying a house; it's joining a community dedicated to sustainability, affordability, and mutual support. Here's everything you need to know about purchasing a CLT home and how you can take the first steps toward ownership.
Features for Buying Members Include:
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The opportunity to Purchase Homes at Affordable Prices: CLT homes are sold at prices significantly lower than market rates, making homeownership accessible to more people.
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Enjoy Long-Term Affordability: We ensure that our homes remain affordable for future generations through resale restrictions, preventing speculative price increases.
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Homebuyer Education: Learn about the home-buying process, financial planning, and maintaining your property through our comprehensive workshops.
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Affordable Lease Terms: Enjoy predictable and fair lease agreements for land, ensuring long-term affordability and security.
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Financial Counseling: Access personalized financial advice and support to help you manage your finances, save for the future, and navigate economic challenges.
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Equity Building: As a homeowner, you build equity over time, providing you with a valuable asset and greater financial stability.
HOW IT WORKS
Steps to Purchase a CLT Home
Through the HomeBuyer Choice Program
Indianapolis Community Land Trust - 🏠 Buyer Info Session
1: Learn About CLT Homeownership
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Attend an Information Session: Join one of our regular sessions to understand the CLT model and the benefits of community ownership.
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Review Eligibility Requirements: Ensure you meet our criteria for income, residency, and commitment to community values.
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All Indy CLT home buyers must earn less than 60% of the Area Median Income (AMI) for the Indianapolis Metro area. The household income is determined using the gross annual income for all individuals 18+ years of age who will be living in the home at the time of closing. Income limits are determined by the Department of Housing and Urban Development (HUD) and can change annually. Income limits for 2024 are listed below.
2: Become A CLT Member
The homebuyer choice program is open to CLT members. There is no cost to become a CLT member. Go to indyclt.org/membership to become a member. Be sure to check “yes” when asked if you are interested in obtaining affordable housing through the Indianapolis Community Land Trust.
3: Complete an Indy CLT Screening Form
Upon signing up for membership, a staff member will send you a screening form. This screening form serves to determine pre-eligibility based on income level and provides valuable information to the Indianapolis Community Land Trust (Indy CLT) regarding the level of interest in the program and participants' circumstances. Households identified as pre-eligible through the screening form will proceed to the next step.
4: Watch the Indy CLT Ground Lease Orientation
Next step is to watch this recording of our ground lease orientation to make sure you understand your rights and responsibilities as a CLT Homeowner:
Ground Lease Orientation 📄 - Indianapolis Community Land Trust 🙌
5: Complete an Indy CLT Application, Attend a HUD-certified Homebuyer Education Course, and Obtain a Mortgage Lender Pre-Approval Letter
All three items below must be completed by 11:59 p.m. September 30, 2024 in order to be considered for CLT homeownership. The last step is submitting your application which will require you upload your homebuyer education completion certificate and lender pre-approval/pre-qualification letter. Because of limited funding at this time, four households will be invited to continue with the process, based on completion of step 5, lottery drawing (see step 6) and funding availability.
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Attend a HUD-certified Homebuyer Education Course
Learn about the many stages of becoming a homeowner, from determining how much you can afford to the closing process, from people who know. This course through INHP is a great resource for anyone thinking about buying a home, not just for Indy CLT homebuyers. Another option called HomeView is available online, for free, and in both English and Spanish. -
Obtain a Mortgage Lender Pre-Approval Letter
CLICK HERE for the contact information for our lenders to start the pre-approval process! Click here for the recording of our Mortgage Lender Info session to get to know them. The Indy CLT requires that potential home-buyers be pre-approved for a mortgage. Interested buyers will need to receive and provide a mortgage pre-approval for a fixed-rate, 30-year mortgage from an Indy CLT approved lender. -
Complete an Indy CLT Application
Full applications will be made available for pre-eligible households who have completed the ground lease orientation. You will need to gather documents to submit to this (last two years federal taxes, paystubs, etc). You will also need to submit your homebuyer education certificate of completion and Mortgage Pre-Approval/Pre-Qualification letter with your application.
6: Lottery & Acceptance
Once you’ve completed all items required in Steps 1-5 above, you will be entered into a lottery to receive program funds. The lottery for Fall 2024 funding will occur during the October CLT membership meeting on Wednesday October 9, 6pm EST (RSVP). Winners of the CLT lottery will be provided with a letter indicating the maximum amount of affordability assistance it will provide and the duration of time you’ll have in order to make an offer on a home. As a reminder, because of limited funding at this time, four households will be accepted into the homebuyer choice program and the rest will be placed on a waitlist for when and if more funding becomes available in the future.
7: Realtor Selection and Meeting
You will more than likely need a realtor to assist in the purchase of your home. You are able to use whatever realtor you would like. Prior to looking for a home to purchase through the Indy CLT Homebuyer Choice Program, you and your realtor will need to meet with Indy CLT staff to review all of the program parameters, additional steps to be taken for the program, and property eligibility.
8: Select a Home and Make an Offer
You can work with a realtor of your choice to find and purchase an existing “turn-key” home anywhere in Indianapolis. Existing homes will only be accepted into the program if they do not require any deferred maintenance or rehab needs at the time of purchase.
9: Indy CLT Review of the Property
Before the Indy CLT will sign off, Indy CLT staff will need to review and walk-through the property to ensure it truly is a “turn-key” property that will not require any deferred maintenance nor rehab in the first several years.
10: Meet with an Attorney
Despite our best efforts, there is still quite a lot of paperwork involved in purchasing a community land trust house. Because of the volume and complexity of the ground lease, loan documents, and closing documents, we require our homebuyers to meet with an attorney (of your choice) prior to closing to review these documents and answer any questions that you might have. Indy CLT will provide up to $300 to cover the cost of this consultant anything above this will be the responsibility of the CLT homebuyer.